Morning News Call - India, January 14

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FACTORS TO WATCH
12:00 pm: Government to release December wholesale price inflation data in
New Delhi.
5:30 pm: Government to release December consumer price inflation data in New
Delhi.
LIVECHAT - FX WEEK AHEAD
FX Buzz analyst Jeremy Boulton analyses G7 currencies at 6:00 pm IST. To
join the conversation, click on the link: refini.tv/2P8N0Wp
INDIA TOP NEWS
• India's industrial output growth nosedives in November
India's industrial output slumped to 0.5 percent in November amid a slowdown
in auto and garment manufacturing, making Prime Minister Narendra Modi's
challenge to boost investment before an election in the coming months seem
tougher than ever.
• Infosys raises revenue guidance, but third-quarter profit misses estimate
Infosys, India's second-biggest IT services company, on Friday raised its
revenue growth forecast on the back of robust demand for its core services as
well as its latest digital offerings from its Western clients.
• Lessors to India's troubled Jet Airways consider taking back planes
-sources
Crisis talks between India's cash-strapped Jet Airways and aircraft lessors
have failed to ease a row over late payments, prompting some lessors to explore
taking back aircraft, three people familiar with the matter told Reuters.
• NSE says its chairman has resigned due to recent legal developments
Ashok Chawla has resigned as the chairman of the National Stock Exchange Of
India (NSE) with immediate effect "in light of recent legal developments," the
exchange said on Friday.
• Social media giants plan push-back on India's new regulations -sources
Global social media and technology giants are gearing up to fight sweeping
new rules proposed by the Indian government that would require them to actively
regulate content in one of the world's biggest Internet markets, sources close
to the matter told Reuters.
• Samsung to launch India-first smartphones to counter Chinese rivals
Samsung plans to launch a budget smartphone series in India ahead of a
global release, aiming to regain ground ceded to Chinese rivals such as Xiaomi
in the world's second-biggest mobile phone market.
• Bharti Airtel to give Tanzania bigger stake in local telecoms firm
Bharti Airtel has agreed to give part of its stake in Airtel Tanzania to the
government, raising the East African nation's holding in the mobile phone
operator to 49 percent from 40 percent, the president's office said on Friday.
• Rahul Gandhi vows to reform sales tax, seek investment as poll nears
India's main opposition Congress party will simplify the goods and services
tax (GST) and take "rational economic decisions" to attract foreign investment
if voted back to power in a general election due by May, its leader Rahul Gandhi
said on Saturday.
GLOBAL TOP NEWS
• China posts strongest export growth in 7 years in 2018 despite trade war
China's exports rose 9.9 percent in 2018, its strongest trade performance in
seven years, despite growing disruptions from an escalating trade war with the
United States, customs data showed.
• Ahead of vote, UK PM May warns it would be catastrophic to halt Brexit
British Prime Minister Theresa May warned lawmakers on Sunday that failing
to deliver Brexit would be catastrophic for democracy, in a plea for support two
days before parliament is expected to reject her deal with Brussels.
• Republican Sen. Graham urges Trump to open US government temporarily
A Republican senator close to President Donald Trump on Sunday backed a
temporary re-opening of the federal government, in the 23rd day of the longest
shutdown ever, to allow for talks on a spending agreement that could satisfy
Trump's border security demands.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• SGX Nifty nearest-month futures were trading almost flat at 10,824.00 from
its previous close.
• The Indian rupee is expected to open little changed after regional
equities floundered after last week’s advance, offsetting a retracement in Brent
crude oil.
• Indian government bonds are expected to trade largely unchanged in early
session as investors await inflation data due after market today. The yield on
the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.48
percent - 7.53 percent band today.
GLOBAL MARKETS
• Wall Street dipped slightly on Friday, breaking a five-session rally, as
energy shares declined and investors looked ahead to earnings season, which
kicks off next week with Citigroup, JPMorgan and other big banks.
• Asian shares turned down as China trade data started trickling in and as
investors looked to key corporate earnings later in the week to take the pulse
of a cooling global economy.
• The dollar rose against most of its peers, although heightened investor
expectations that the Federal Reserve will not raise rates this year are most
likely to cap the greenback's gains.
• U.S. Treasury debt prices gained on Friday as stocks weakened in choppy
trading, and as bonds were also helped by the weight of new Treasury supply this
week being lifted from the market.
• Oil prices edged up, supported by ongoing supply cuts from producer club
OPEC and Russia and by a drop in U.S. drilling activity.
• Gold prices inched up, supported by expectations that the U.S. Federal
Reserve will not raise rates this year, but the yellow metal faced a strong
technical resistance at $1,300, keeping the bullion range-bound for the past
couple of weeks.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 70.51/70.54 January 11 -$97.65 mln -$60.36 mln
10-yr bond yield 7.5 pct Month-to-date -$238.15 mln -$254.96 mln
Year-to-date --- ---
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 70.35 Indian rupees)
(Compiled by Samrhitha Arunasalam in Bengaluru)